Answer:
$77,950
Explanation:
We know that,
Total assets = Total liabilities + Shareholder equity
where,
Total assets = $240,859 + $55,000 = $295,859
Total liabilities = $140,674
And, the Ending retained earning balance = Beginning balance of retained earnings + net income - dividend paid
= $45,035 + $44,200 - $12,000
= $77,235
Now the shareholder equity would be
= Total assets - total liabilities - ending retained earning balance
= $295,859 - $140,674 - $77,235
= $77,950
Answer:
Blue Spruce report as its December 31 inventory is $285,000
Explanation:
Correct inventory
= 229,500 + goods purchased FOB shipping point 30,000 + goods sold FOB destination 25,500
= 229,500 + 30,000 + 25,500
= 285,000
Answer:
A. No, because Ahmed is not a merchant.
Explanation:
Implied warranty of merchantability is a law in contract which states that when there is a transaction between a seller (the merchant), and a buyer, there is an unwritten guarantee from the seller, that the product meets up to the ordinary standards of care. This means that the goods must be fit to do what the merchant says it will do. Therefore, if the seller finds it defective, he could return it to the seller. and if the seller refuses to make a change, a legal case could be established. The merchant by law is a wholesaler or retailer, who sells goods in which he has expertise or special skills.
Ahmed in the question could be argued in court to not be a merchant of cars and as such, has no expertise with which he can make a guarantee for the car being sold to Carlos.
